The Public Accounts Committee (PAC) clashed with the Guyana Water Incorporated (GWI) on Monday over the fact that a programme that was approved by the National Assembly was revised despite works already commencing.
While GWI and the Communities Ministry had held out that nothing wrong was done when it revised the terms of the Hinterland Water Supply programme, Auditor General Deodat Sharma informed them of their liability in the matter. According to
PAC Chairman Irfaan Ali
Sharma, GWI in actuality breached the Fiscal Management and Accountability Act (FMAA).
“Mr chair, that’s a breach of the Fiscal Act. The FMA Act says unspent balances must be refunded to the Consolidated Fund. But you only got the approval on 29 of December. So you are covering yourself afterwards. So that’s a breach,” Sharma explained.
GWI’s Executive Director for Project Implementation, Ramchand Jailal, faced the brunt of questioning from the PAC. He related that during 2016 the original programme was revised, but when asked for the specific date he could not provide it.
“No, no. We suspended the looking at these paragraphs the last time so that you would come with the relevant information to the PAC. And we are not going to suspend another (time), you’ll have to find the relevant information today.”
“We have a serious situation here,” Ali continued. “We have a programme that was approved by the Parliament and very early, you actually changed that programme that Parliament had debated.”
Jailall subsequently confirmed that the revision was made on December 29. But Ali questioned the fact that the full amount was expended on December 31, after being approved only days before.
Ali noted that this meant the work had already started under the terms of the original project details. When Jailall confirmed this, the PAC Chairman questioned the procedure GWI followed to revise the project.
“These are monies allocated in the National Budget for a specific project. You only revise your programme from December 29. When did you get the approval for a revised programme? He asked Jailall, who replied “December 29.”
“So how were you spending the resources before you got the approval?” Ali asked him. Jailall denied that monies were spent prior to approval being granted. He claimed that monies were only disbursed for the works afterwards.
Communities Ministry Permanent Secretary Emil McGarrell, who was present at the considerations, came to Jailall’s defence. He noted that there was precedence for GWI’s actions and that Ministries are known for holding cheques into a new year when they have not been collected.
A sum of $195.400 million was allocated for the completion and upgrading of water systems at Mahdia, Mabaruma and Paramakatoi for the year under review.
The Auditor General had found that on December 29, 2016, an approval for an adjustment of programme was granted for the amount of $195.400 million. According to the Appropriation Account, the full amount was expended as at December 31, 2016.
Besides this, the Ministry had budgeted $585.863 million for completion of wells, water treatment plants and distribution mains at Esau and Jacob, Port Mourant, Eccles, Timehri, Wakenaam and Numbers 66 to 69 Villages.
Works were also planned for drilling of Wells at Lima Sands and Noitgedacht; for the installation of transmission and distribution lines from Hubu to Naamless; installation of water supply system and distribution network at Friendship, Yarrowkabra and Waia Kabra.
There were also plans for the installation of distribution mains at Soesdyke, Ann’s Grove, Mocha, Dazzell Housing Scheme, Golden Grove, Victoria, Lusignan, Le Ressouvenir and Vryheid’s Lust Housing Scheme; and rehabilitation and upgrading of Cotton Tree and Bartica Water Treatment Plants. According to the Appropriation Account, the full amount was expended as at December 31, 2016.
